What is the correct order of the loss-limitation rules?
A)Tax basis, at-risk amount, passive loss limits.
B)At-risk amount, tax basis, passive loss limits.
C)Passive loss limits, at-risk amount, tax basis.
D)Tax basis, passive loss limits, at-risk amount.
E)Passive loss limits, tax basis, at-risk amount.

Question

Quizplus · Accepted Answer

The correct order of the loss-limitation rules for tax purposes is: tax basis, at-risk amount, and then passive loss limits. This sequence determines the amount of loss a taxpayer can deduct.

What Is the Correct Order of the Loss-Limitation Rules